Australia places great value, on its relationship with ASEAN. We are neighbors with a shared outlook on many matters. What happens in this region has a direct impact on Australia’s stability and prosperity.

Australia is proud to claim that status of ASEANs first formal Dialogue Partner we became Dialogue Partners in 1974 when ASEAN was an association of just five countries, Now over 20 years later, ASEAN has seen members and ten Dialogue Partners.

Cooperation between ASEAN and Australia has always been close in political matters, including regional non-proliferation. Australia welcomed the signature, in December last year, of the SEANWFZ Treaty by the ten countries of South East Asia. We hope that ASEAN and the uclear weapon states will be able to reach agreement on outstanding issues associated with signature of the SEANWFZ Treaty Protocol in the near future Australia is pleased to be able to report that while China and the then USSR were early signatories of the South Pacific Nuclear Free Zone Treaty. the United States, France and the United Kingdom also added their signatures to the relevant Protocols of the Treaty in March 1996, fulfilling a long-standing objective for Australia and other members of the South Pacific Forum.

Australia greatly values the strong support e have received over the last year from ASEAN states for our candidature for election to the UN Security Council. Australia’s candidacy also has the formal endorsement of the South Pacific Forum. If elected to the UN Security Council, Australia would offer a non-European perspective within WEOG representation on the Council and is committed to improving consultation between Council members and nonmembers.

Australia is interested in deepening its relations with ASEAN in areas of mutual interest, We have observed with interest the commencement of a more active dialogue between Asian countries and European countries. The outcome of the first Asia-Europe meeting in Bangkok in March appeared to be very positive, with a number of areas of practical cooperation identified for follow-up activities Australia welcomes the commitment by leaders in Asia, and in Europe, that the ASEM process should be open and evolutionary Australia remains , cry interested in participation in the ASEM process ASEM has twenty-six members but only ten on the Asian side. The balance of representation between Europe and Asia would be improved by the addition of Australia and New Zealand.

Development Cooperation

With rapid economic development and increasing economic prosperity in the individual ASEAN countries, with a number of ASEAN members themselves now becoming aid donors, and with new areas of cooperation emerging in trade and investment between Australia and ASEAN, development cooperation is taking a lower profile in our overall relationship than it once did. This something we should welcome it signifies the parity and mutual interest that now underlies our cooperative efforts.

Economic cooperation

The sustained economic growth of ASEAN countries over the last two decades, coupled with the move to trade liberalisation that has swept through this region, has changed dramatically the international landscape of which our countries are a part.

Australia has also changed Old protectionist policies are long gone. Economic reforms have been implemented, the Australian economy is competitive, and 60 % of our trade is now with East Asia. The driving force behind the formulation of Australia's trade policy objectives, and of economic policy generally, is the need to foster the development of an internationally competitive and outward looking economy. Complementary domestic policies are being pulsed to improve trade performance in all sectors of the economy by removing domestic impediments to improved competitiveness.

Australia’s trade and investment relationship with ASEAN has improved as these changes have taken place. In 1995 six of Australia's 10 top trading partners were from East Asia, but only one (Singapore) from ASEAN. However ASEAN as a group is Australia's second largest export market, and in 1995 accounted for 16% of our total exports. Australian exports to ASEAN have shown annual trend growth of 13 % over the last 5 years, but there is room for an even stronger performance given ASEAN’s 17% - plus annual import growth rate, There has also been strong growth in ASEAN exports to Australia. Two-way trade reached AUD $18,4 billion in 1995.

Strong growth in trade has been accompanied by an increase in investment. At the end of June 1994, Australian recorded investment in ASEAN was valued at A$ 6,6 billion, but we believe this figure significantly underestimates the true level of investment in ASEAN countries, much of which flows through regional financial hubs. ASEAN investment in Australia has also grown strongly, at the rate of 17% growth in 1994. However Singapore accounted for over 86 % of the total of this investment.

There is significant capacity for both sides to increase our trade and investment particularly as our market capacity expands.

Since the ASEAN Free Trade Area was first announced in 1992, ASEAN has moved to accelerate and deepen the tariff reduction schedule of AFTA. Australia would encourage ASEAN countries to continue to reduce their MFN tariff rates unilaterally at the same time as they implement AFTA, in order to minimize the distortionary impact of the AFTA reductions and to bring cost benefits to local manufacturers which rely on imports of Australian raw materials or component, and also to consumers.

Australia welcomed the call made by ASEAN Leaders at their Summit meeting in December 1995 to intensify linkages with other regional groupings, including AFTA-CER.

A very constructive step forward in our regional economic cooperation occurred in September 1995, in Brunei, when trade ministers from ASEAN and from Australia and New Zealand met for the first time to discuss cooperation and possible linkages between the ASEAN Free Trade Area and the Closer Economic Relations agreement, and in December when ASEAN Leaders called for the intensification of linkages with other regional groupings, specifically referring to AFTA/CER. Ministers agreed in September to focus cooperation in seven areas exchange of information, human resource development, customs matters, standards and conformance, trade and investment facilitation and promotion, competition policy and industrial cooperation- The first year of the subsequent talks has shown good progress in expanding the area of Understanding and common ground between the two regions and should set a solid foundation for further progress. The second AEM-CER Ministerial meeting in Jakarta t his year will be a good opportunity to strengthen this Cooperation.

ASEAN leaders also agreed at their Summit meeting to negotiate the liberalisation of seven services sectors as pat of an ASEAN Services Framework Agreement. This is a significant step which Australia hopes will lead to the opening up of these sectors to non-ASEAN countries at an early opportunity. The Leaders' commitment to the establishment of an ASEAN Framework Agreement on intellectual Property is also step which we hope ill provide a basis for more cooperation between ASEAN and Australia on intellectual property issues.

Australia shares ASEAN’s vision for development of the Mekong Basin Australia already has a significant record of commitment to developing the Mekong Basin. An open flow of information and cooperation between all countries involved in development cooperation, or in infrastructure development, is essential at an early stage for the comprehensive and integrated development of this sub-region.

The successful take-off of growth -ones in South East Asia is also of interest to Australia. Growth areas have the potential not only to assist regional economic development, but also enhance regional social and cultural cooperation- A substantive partnership is developing already between the Northern Territory of Australia and the ASEAN members involved in the Brunei - Indonesia - Malaysia - Philippines East ASEAN Growth Area (BIMP-EAGA). The Northern Territory has signed Memorandums of Understanding ( MOUs) with the Philippines, Indonesia and Brunei. A Memorandum of Intent with the Malaysian federal territory of Labuan has been signed, and two others are being negotiated with the states of Sabah and Sarawak. The Northern Territory Government and private sectors have also participated, with good results, in BIMP-EAGA 13-siness Forum, and Expose, most recently in the BIMP-EAGA Agri-Aqua Fair in Davao City, the Philippines. Australia appreciates the cooperation given by BIMP-EAGA members in developing this partnership with the Northern Territory. We would like to, see cooperation extended and expanded into other growth zones, such as that linking Indonesia, Malaysia and Singapore or that which links Indonesia, Malaysia and Thailand.

The relative economic prosperity of most ASEAN members together with the new forms of political and economic cooperation that are being forget in ASEAN-Australia relations, suggest that the relationship is a strong one, based on successful cooperation and spirit of partnership. The Australian Government attaches great importance to its relations with neighbours in South East Asia and looks forward to deepening and extending its links with ASEAN countries into new areas.